74R9535 PB-D
          By Jackson, Eiland                                    H.B. No. 1589
          Substitute the following for H.B. No. 1589:
          By Brady                                          C.S.H.B. No. 1589
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the provision of workers' compensation benefits for
    1-3  certain state employees and to the creation, powers, and duties of
    1-4  the State Office of Risk Management.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 412, Labor Code, is amended to read as
    1-7  follows:
    1-8              CHAPTER 412.  <DIVISION OF> RISK MANAGEMENT
    1-9                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-10        Sec. 412.001.  DEFINITIONS.  In this chapter:
   1-11              (1)  "Board"  means the risk management board.
   1-12              (2)  "Director" means the executive director of the
   1-13  office <division>.
   1-14              (3) <(2)>  "Office" <"Division"> means the State Office
   1-15  of Risk Management <division of risk management of the commission>.
   1-16              (4) <(3)>  "State agency" means a board, commission,
   1-17  department, office, or other agency in the executive, judicial, or
   1-18  legislative branch of state government that has five or more
   1-19  employees, was created by the constitution or a statute of this
   1-20  state, and has authority not limited to a specific geographical
   1-21  portion of the state.  The term includes an institution of higher
   1-22  education as defined by Section 61.003, Education Code.
   1-23           (Sections 412.002-412.010 reserved for expansion
   1-24            SUBCHAPTER B.  STATE OFFICE OF RISK MANAGEMENT
    2-1        Sec. 412.011.  OFFICE; BOARD.  (a)  The Office of Risk
    2-2  Management is created to administer the workers' compensation
    2-3  program for state employees.  The office is governed by the risk
    2-4  management board.  Members of the board must have demonstrated
    2-5  experience in the field of workers' compensation and risk
    2-6  management administration.
    2-7        (b)  The board is composed of six members as follows:
    2-8              (1)  three members appointed by the lieutenant
    2-9  governor; and
   2-10              (2)  three members appointed by the speaker of the
   2-11  house of representatives.
   2-12        (c)  Members of the board hold office for staggered terms of
   2-13  six years with two members' terms expiring February 1 of each
   2-14  odd-numbered year.  A member appointed to fill a vacancy shall hold
   2-15  office for the remainder of that term.
   2-16        (d)  The lieutenant governor and speaker of the house of
   2-17  representatives shall designate one member of the board as
   2-18  presiding officer on an alternating basis.  The presiding officer
   2-19  shall serve in that capacity for a two-year term.
   2-20        (e)  The board is subject to Chapters 552 and 2001,
   2-21  Government Code.
   2-22        (f)  The board is subject to Chapter 325, Government Code
   2-23  (Texas Sunset Act).  Unless continued in existence as provided by
   2-24  that chapter, the board is abolished and this section expires
   2-25  September 1, 2007.
   2-26        Sec. 412.012.  TRAINING PROGRAM FOR BOARD MEMBERS.  (a)
   2-27  Before a member of the board may assume the member's duties, the
    3-1  member must complete the training program established under this
    3-2  section.
    3-3        (b)  A training program established under this section must
    3-4  provide information to the member regarding:
    3-5              (1)  the enabling legislation that created the board;
    3-6              (2)  the programs operated by the board;
    3-7              (3)  the role and functions of the board;
    3-8              (4)  the rules of the board, with an emphasis on the
    3-9  rules that relate to disciplinary and investigatory authority;
   3-10              (5)  the current budget for the board;
   3-11              (6)  the results of the most recent formal audit of the
   3-12  board;
   3-13              (7)  the requirements of:
   3-14                    (A)  the open meetings law, Chapter 551,
   3-15  Government Code;
   3-16                    (B)  the open records law, Chapter 552,
   3-17  Government Code; and
   3-18                    (C)  the administrative procedure law, Chapter
   3-19  2001, Government Code;
   3-20              (8)  the requirements of the conflict of interest laws
   3-21  and other laws relating to public officials; and
   3-22              (9)  any applicable ethics policies adopted by the
   3-23  board or the Texas Ethics Commission.
   3-24        Sec. 412.013.  EFFECT OF LOBBYING ACTIVITY.  A person may not
   3-25  serve as a member of the board or act as the general counsel to the
   3-26  board if the person is required to register as a lobbyist under
   3-27  Chapter 305, Government Code, because of the person's activities
    4-1  for compensation on behalf of a profession that is regulated by or
    4-2  that has fees regulated by the board.
    4-3        Sec. 412.014.  GROUNDS FOR REMOVAL FROM BOARD.  (a)  It is a
    4-4  ground for removal from the board if a member:
    4-5              (1)  does not have at the time of appointment the
    4-6  qualifications required for appointment to the board;
    4-7              (2)  does not maintain during service on the board the
    4-8  qualifications required for appointment to the board;
    4-9              (3)  violates a prohibition established by
   4-10  Section 412.013;
   4-11              (4)  cannot because of illness or incapacity discharge
   4-12  the member's duties for a substantial part of the term for which
   4-13  the member is appointed; or
   4-14              (5)  is absent from more than half of the regularly
   4-15  scheduled board meetings that the member is eligible to attend
   4-16  during a calendar year.
   4-17        (b)  If the director knows that a potential ground for
   4-18  removal exists, the director shall notify the presiding officer of
   4-19  the board of the potential ground.  The presiding officer shall
   4-20  then notify the lieutenant governor, speaker of the house of
   4-21  representatives, and the attorney general that a potential ground
   4-22  for removal exists.  If the potential ground for removal involves
   4-23  the presiding officer, the director shall notify the next highest
   4-24  officer of the board, who shall notify the lieutenant governor,
   4-25  speaker of the house of representatives, and the attorney general
   4-26  that a potential ground for removal exists.
   4-27        Sec. 412.015.  RULES.  The board shall adopt rules as
    5-1  necessary to implement this chapter.
    5-2        Sec. 412.016.  STAFF; DIRECTOR.  (a)  The office is
    5-3  administratively attached to the commission, and the basic staff
    5-4  and necessary facilities that are required to administer this
    5-5  chapter shall be the staff and facilities of the commission.  The
    5-6  commission staff shall act as the agents of the board.  If
    5-7  necessary to the administration of this chapter, the board by
    5-8  agreement may secure and provide for compensation for services that
    5-9  it considers necessary and may employ and compensate within
   5-10  available appropriations professional consultants, technical
   5-11  assistants, and employees on a full-time or part-time basis.
   5-12        (b)  The board shall appoint a qualified person to serve as
   5-13  director of the office.  The director serves at the pleasure of the
   5-14  board.  In addition to other duties provided by this chapter and by
   5-15  the board, the director shall:
   5-16              (1)  keep full and accurate minutes of the transactions
   5-17  and proceedings of the board;
   5-18              (2)  be the custodian of the files and records of the
   5-19  board;
   5-20              (3)  prepare and recommend to the board plans and
   5-21  procedures necessary to implement the purposes and objectives of
   5-22  this chapter, including rules and proposals or administrative
   5-23  procedures consistent with this chapter;
   5-24              (4)  exercise general supervision over persons employed
   5-25  by the commission in the administration of this chapter;
   5-26              (5)  be responsible for the investigation of complaints
   5-27  and for the presentation of formal complaints;
    6-1              (6)  attend all meetings of the board as a nonvoting
    6-2  participant; and
    6-3              (7)  handle the correspondence of the board and obtain,
    6-4  assemble, or prepare the reports and information that the board may
    6-5  direct or authorize.
    6-6           (Sections 412.017-412.030 reserved for expansion
    6-7             SUBCHAPTER C.  RISK MANAGEMENT ADMINISTRATION
    6-8        Sec. 412.031.  PROVISIONAL <Sec. 412.002.> EXEMPTION OF
    6-9  CERTAIN STATE AGENCIES; REPORT.  (a)  Except as provided by
   6-10  Subsections (b) and (c), this <This> chapter does not apply to a
   6-11  state agency that had medical malpractice insurance coverage,
   6-12  workers' compensation insurance coverage, or other self-insurance
   6-13  coverage with associated risk management programs before January 1,
   6-14  1989.
   6-15        (b)  Each state agency shall comply with the annual report
   6-16  requirement imposed under Section 412.035.
   6-17        (c)  The office shall evaluate biennially the effectiveness
   6-18  of the risk management program operated by a state agency that is
   6-19  exempt under Subsection (a).  If, based on that evaluation, the
   6-20  director determines that the program operated by the state agency
   6-21  is not effective in reducing losses, the director shall revoke the
   6-22  exemption granted under this section, and the state agency shall
   6-23  comply with the requirements of this chapter on notification by the
   6-24  director that the exemption has been revoked.
   6-25        Sec. 412.032.  DUTIES OF STATE AGENCIES.  Each state agency
   6-26  subject to this chapter shall actively manage the risks of that
   6-27  agency by developing, implementing, and maintaining health and
    7-1  safety programs and programs designed to assist employees who
    7-2  sustain compensable injuries to return to work.
    7-3        Sec. 412.033 <412.003>.  DUTIES OF OFFICE <DIVISION>.
    7-4  (a)  The office <division> shall:
    7-5              (1)  administer guidelines adopted by the board
    7-6  <commission> for a comprehensive risk management program applicable
    7-7  to all state agencies to reduce property and liability losses,
    7-8  including workers' compensation losses; and
    7-9              (2)  review, verify, monitor, and approve risk
   7-10  management programs adopted by state agencies.
   7-11        (b)  The office <division> shall assist a state agency that
   7-12  has not implemented an effective risk management program to
   7-13  implement a comprehensive program that meets the <division>
   7-14  guidelines established by the board.
   7-15        (c)  The office shall administer the workers' compensation
   7-16  insurance program for state employees established under Chapter
   7-17  501.
   7-18        Sec. 412.034 <412.004>.  STATE RISK MANAGER.  (a)  The
   7-19  director serves as the state risk manager.
   7-20        (b)  The director shall supervise the development and
   7-21  administration of systems to:
   7-22              (1)  identify the property and liability losses,
   7-23  including workers' compensation losses, of each state agency;
   7-24              (2)  identify the administrative costs of risk
   7-25  management incurred by each state agency;
   7-26              (3)  identify and evaluate the exposure of each state
   7-27  agency to claims for property and liability losses, including
    8-1  workers' compensation; and
    8-2              (4)  reduce the property and liability losses,
    8-3  including workers' compensation, incurred by each state agency.
    8-4        Sec. 412.035 <412.005>.  ANNUAL REPORT BY STATE AGENCY.
    8-5  (a)  Each state agency shall report to the director for each fiscal
    8-6  year:
    8-7              (1)  the location, timing, frequency, severity, and
    8-8  aggregate amounts of losses by category of risk, including open and
    8-9  closed claims and final judgments;
   8-10              (2)  loss information obtained by the state agency
   8-11  <workers' compensation division of the attorney general's office>
   8-12  in the course of its administration of the workers' compensation
   8-13  program <for state agencies>;
   8-14              (3)  detailed information on existing and potential
   8-15  exposures to loss, including property location and values,
   8-16  descriptions of agency operations, and estimates of maximum
   8-17  probable and maximum possible losses by category of risk;
   8-18              (4)  estimates by category of risk of losses incurred
   8-19  but not reported;
   8-20              (5)  information the director determines necessary to
   8-21  prepare a Texas Workers' Compensation Unit Statistical Report; and
   8-22              (6)  additional information that the director
   8-23  determines to be necessary.
   8-24        (b)  The information shall be reported on or before 60 days
   8-25  after the close of each fiscal year.
   8-26        (c)  For the purposes of this section, "state agency"
   8-27  includes:
    9-1              (1)  The University of Texas System;
    9-2              (2)  The Texas A&M University System;
    9-3              (3)  an institution under the direction and control of
    9-4  the board of regents of Texas Tech University; and
    9-5              (4)  the Texas Department of Transportation.
    9-6        Sec. 412.036 <412.006>.  RULEMAKING AUTHORITY.  (a)  The
    9-7  board <commission> may adopt rules as necessary to implement this
    9-8  chapter, including rules relating to reporting requirements for a
    9-9  state agency.
   9-10        (b)  Notwithstanding Section 402.061, the commission may not
   9-11  adopt rules relating to the implementation of this chapter.
   9-12        Sec. 412.037 <412.007>.  BOARD'S <COMMISSION'S> REPORT TO
   9-13  LEGISLATURE.  (a)  Based on the recommendations of the director,
   9-14  the board <commission> shall report to each legislature relating
   9-15  to:
   9-16              (1)  methods to reduce the exposure of state agencies
   9-17  to the risks of property and liability losses, including workers'
   9-18  compensation losses;
   9-19              (2)  the operation, financing, and management of those
   9-20  risks; and
   9-21              (3)  the handling of claims brought against the state.
   9-22        (b)  The report must include:
   9-23              (1)  the frequency, severity, and aggregate amount of
   9-24  open and closed claims in the preceding biennium by category of
   9-25  risk, including final judgments;
   9-26              (2)  the identification of each state agency that has
   9-27  not complied with the risk management guidelines and reporting
   10-1  requirements of this chapter; and
   10-2              (3)  recommendations for the coordination and
   10-3  administration of a comprehensive risk management program to serve
   10-4  all state agencies, including recommendations for any necessary
   10-5  statutory changes.
   10-6        Sec. 412.038 <412.008>.  INTERAGENCY CONTRACTS.  (a)  Each
   10-7  state agency shall enter into an interagency contract with the
   10-8  office and the commission under Chapter 771, Government Code, to
   10-9  pay the costs incurred by the office and the commission in
  10-10  administering this chapter for the benefit of that state agency.
  10-11  Costs payable under the contract include the cost of:
  10-12              (1)  services of office and commission employees;
  10-13              (2)  materials; and
  10-14              (3)  equipment, including computer hardware and
  10-15  software.
  10-16        (b)  The amount of the costs to be paid by a state agency
  10-17  under the interagency contract is based on:
  10-18              (1)  the number of employees of the agency compared
  10-19  with the total number of employees of all state agencies to which
  10-20  this chapter applies;
  10-21              (2)  the dollar value of the agency's property and
  10-22  asset and liability exposure compared to that of all state agencies
  10-23  to which this chapter applies; and
  10-24              (3)  the number and aggregate cost of claims and losses
  10-25  incurred by the agency compared to those incurred by all state
  10-26  agencies to which this chapter applies.
  10-27        SECTION 2.   Section 402.021(a), Labor Code, is amended to
   11-1  read as follows:
   11-2        (a)  The commission shall have:
   11-3              (1)  a division of workers' health and safety;
   11-4              (2)  a division of medical review;
   11-5              (3)  a division of compliance and practices; and
   11-6              (4)  a division of hearings<; and>
   11-7              <(5)  a division of risk management>.
   11-8        SECTION 3.  Section 403.003(b), Labor Code, is amended to
   11-9  read as follows:
  11-10        (b)  In setting the rate of assessment, the commission may
  11-11  not consider revenue or expenditures related to:
  11-12              (1)  the State Office of Risk Management <division of
  11-13  risk management>;
  11-14              (2)  the research center; or
  11-15              (3)  any other revenue or expenditure excluded from
  11-16  consideration by law.
  11-17        SECTION 4.  Section 501.001, Labor Code, is amended by
  11-18  amending Subdivisions (3) and (4) and by adding Subdivision (7) to
  11-19  read as follows:
  11-20              (3)  "Director" means the director of the State Office
  11-21  of Risk Management <workers' compensation division of the attorney
  11-22  general's office>.
  11-23              (4)  "Office" <"Division"> means the State Office of
  11-24  Risk Management <workers' compensation division of the attorney
  11-25  general's office>.
  11-26              (7)  "Board" means the risk management board.
  11-27        SECTION 5.   Sections 501.002(b) and (c), Labor Code, are
   12-1  amended to read as follows:
   12-2        (b)  For the purposes of this chapter and Chapter 451, the
   12-3  individual state agency shall be considered the employer.
   12-4        (c)  For the purpose of applying the provisions listed by
   12-5  Subsection (a) to this chapter, "insurer" or "employer" means
   12-6  "state," "office," <"division," or> "director," or "state agency,"
   12-7  as applicable.
   12-8        SECTION 6.  Section 501.003(a), Labor Code, is amended to
   12-9  read as follows:
  12-10        (a)  The provisions of this chapter and the rules of the
  12-11  board <director> affecting an employee also apply to the legal
  12-12  beneficiary of a deceased employee.
  12-13        SECTION 7.  Subchapter B, Chapter 501, Labor Code, is amended
  12-14  by adding Section 501.0215 to read as follows:
  12-15        Sec. 501.0215.  MAINTENANCE OF EMPLOYEE ON PAYROLL.  (a)  A
  12-16  state agency shall maintain an employee who incurs a compensable
  12-17  injury on the agency's payroll until the 31st day after the first
  12-18  day on which the employee is unable to work because of the
  12-19  compensable injury.  On the expiration of the 30-day period, the
  12-20  employee may elect to use accrued annual and sick leave before
  12-21  receiving income benefits as provided by Section 501.044.
  12-22        (b)  The requirement imposed under Subsection (a) does not
  12-23  affect:
  12-24              (1)  the employee's entitlement to benefits under this
  12-25  chapter; or
  12-26              (2)  the employing agency's duty to report the injury
  12-27  under Chapters 409 and 412.
   13-1        SECTION 8.  Section 501.022, Labor Code, is amended to read
   13-2  as follows:
   13-3        Sec. 501.022.  TEXAS TECH UNIVERSITY EMPLOYEES.  (a)  An
   13-4  eligible employee of Texas Tech University, Texas Tech University
   13-5  Health Sciences Center <Research Farm, Texas Tech University School
   13-6  of Medicine at Lubbock>, or another agency under the direction and
   13-7  control of the board of regents of Texas Tech University and Texas
   13-8  Tech University Health Sciences Center is entitled to participate
   13-9  in the workers' compensation program for state employees provided
  13-10  under this chapter.
  13-11        (b)  For purposes of this chapter, Texas Tech University is a
  13-12  state agency and shall act in the capacity of employer.
  13-13        (c)  For purposes of this chapter, Texas Tech University
  13-14  Health Sciences Center is a state agency and shall act in the
  13-15  capacity of employer.
  13-16        SECTION 9.  Section 501.023, Labor Code, is amended to read
  13-17  as follows:
  13-18        Sec. 501.023.  STATE SELF-INSURING; ALLOCATION PROGRAM FOR
  13-19  FINANCING OF STATE WORKERS' COMPENSATION BENEFITS.  (a)  The state
  13-20  is self-insuring with respect to an employee's compensable injury.
  13-21  The legislature shall appropriate the total amount designated for
  13-22  the payment of state workers' compensation claims costs to the
  13-23  office.  This section does not affect the reimbursement of claims
  13-24  costs by funds other than general revenue funds, as provided by the
  13-25  General Appropriations Act.
  13-26        (b)  The office shall establish an allocation program for the
  13-27  payment of workers' compensation claims costs incurred by state
   14-1  agencies subject to this chapter.  The money appropriated by the
   14-2  legislature for workers' compensation for state employees shall be
   14-3  allocated under that program as provided by this section.
   14-4        (c)  Based on the information reported to the office under
   14-5  Sections 412.035 and 501.048, at the beginning of each state fiscal
   14-6  biennium the office shall determine which state agencies accounted
   14-7  for 90 percent of the state's workers' compensation claims costs
   14-8  for the preceding state fiscal biennium.  Those state agencies are
   14-9  required to participate in the allocation program for the next
  14-10  state fiscal biennium.  The office shall establish a formula for
  14-11  allocating the state's workers' compensation costs among those
  14-12  agencies, based on the claims experience of the agencies and the
  14-13  related costs incurred for administering the claims.
  14-14        (d)  A state agency that is required to participate in the
  14-15  allocation program shall be rewarded or penalized for its actual
  14-16  performance against expected workers' compensation losses as
  14-17  provided by this section.
  14-18        (e)  The office shall receive the amount appropriated for
  14-19  workers' compensation claims.  The office shall:
  14-20              (1)  monitor workers' compensation expenses incurred by
  14-21  each state agency required to participate in the allocation
  14-22  program; and
  14-23              (2)  compare and report to each of those agencies the
  14-24  difference between the allocated amount and the agency's actual
  14-25  expenses for workers' compensation.
  14-26        (f)  If, based on the comparison performed under Subsection
  14-27  (e)(2), the office determines that an agency's performance resulted
   15-1  in workers' compensation claims costs that were higher than the
   15-2  amount allocated to that agency, the agency is not entitled to
   15-3  additional state funds for those costs beyond the initial
   15-4  allocation and shall pay the additional costs from the agency's
   15-5  regular appropriated funds as listed in the General Appropriations
   15-6  Act.  The agency shall reimburse the office for the additional
   15-7  costs through interagency contracts, from the agency's regular
   15-8  appropriated funds.
   15-9        (g)  If, based on the comparison performed under Subsection
  15-10  (e)(2), the office determines that an agency's performance resulted
  15-11  in workers' compensation claims costs that were lower than the
  15-12  amount allocated to that agency, the agency is entitled to retain a
  15-13  portion of the savings.  The office shall determine the amount of
  15-14  the savings that the agency may retain.
  15-15        (h)  A state agency that is determined by the office to be
  15-16  exempt from participation in the allocation program shall receive
  15-17  full coverage for workers' compensation costs incurred by that
  15-18  agency from the office.
  15-19        SECTION 10.  Section 501.041, Labor Code, is amended to read
  15-20  as follows:
  15-21        Sec. 501.041.  ADMINISTRATION OF WORKERS' COMPENSATION
  15-22  <DIVISION; DIRECTOR>.  (a)  <The attorney general shall maintain a
  15-23  division of workers' compensation to administer this chapter.>
  15-24        <(b)  The attorney general shall appoint a director to act as
  15-25  chief executive and administrative officer of the division.>
  15-26        <(c)  The attorney general shall provide the director with
  15-27  office space and sufficient personnel to administer this chapter.>
   16-1        <(d)>  The office <director> shall administer this chapter
   16-2  with money appropriated by the legislature.
   16-3        (b)  The board <(e)  With the approval of the attorney
   16-4  general, the director> may contract with a company authorized to do
   16-5  business in this state for any or all of the administrative
   16-6  services required by this chapter.  A contract awarded under this
   16-7  subsection shall be awarded on the basis of competitive bidding by
   16-8  qualified companies.
   16-9        SECTION 11.  Section 501.042, Labor Code, is amended to read
  16-10  as follows:
  16-11        Sec. 501.042.  DIRECTOR AS <EMPLOYER AND> INSURER.  (a)  In
  16-12  administering and enforcing this chapter, the director shall act in
  16-13  the capacity of <employer and> insurer.
  16-14        (b)  The director shall act as an adversary before the
  16-15  commission and courts and present the legal defenses and positions
  16-16  of the state as an <employer and> insurer.
  16-17        (c)  For the purposes of this section, the director is
  16-18  entitled to the legal counsel of the attorney general.
  16-19        (d)  In the capacity of insurer, the <The> director is
  16-20  subject to the rules, orders, and decisions of the commission in
  16-21  the same manner as any other <a private employer,> insurer<,> or
  16-22  association.
  16-23        SECTION 12.  Section 501.043, Labor Code, is amended to read
  16-24  as follows:
  16-25        Sec. 501.043.  <DIRECTOR'S> POWERS AND DUTIES OF BOARD AND
  16-26  DIRECTOR.  (a)  The board <director> shall<:>
  16-27              <(1)>  adopt procedural rules and prescribe forms
   17-1  necessary for the effective administration of this chapter<; and>
   17-2              <(2)  adopt and enforce reasonable rules for the
   17-3  prevention of accidents and injuries>.
   17-4        (b)  The director shall hold hearings on all proposed rules
   17-5  and provide reasonable opportunity for the officers of state
   17-6  agencies to testify at hearings on all proposed rules under this
   17-7  section.
   17-8        (c)  The director shall furnish copies of all rules to the
   17-9  commission and to the administrative heads of all state agencies
  17-10  affected by this chapter.
  17-11        SECTION 13.  Section 501.044, Labor Code, is amended to read
  17-12  as follows:
  17-13        Sec. 501.044.  Effect of Annual and Sick Leave.  An employee
  17-14  may elect to use accrued annual and sick leave before receiving
  17-15  income benefits.  If an employee elects to use annual and sick
  17-16  leave, medical services remain available to the employee, but the
  17-17  employee is not entitled to income benefits under this chapter
  17-18  until the employee has exhausted the employee's accrued annual and
  17-19  sick leave.
  17-20        SECTION 14.  Section 501.046, Labor Code, is amended to read
  17-21  as follows:
  17-22        Sec. 501.046.  REPORTS OF TERMINATION OR CONTINUATION OF
  17-23  INJURIES.  In addition to other reports required by the board
  17-24  <commission>, the director shall file a subsequent report not later
  17-25  than the 10th day after the date of the termination of the injured
  17-26  employee's incapacity.  If the employee's incapacity extends beyond
  17-27  60 days, the director shall file a subsequent report before the
   18-1  70th day after the date the employee's incapacity began.
   18-2        SECTION 15.  Section 501.048, Labor Code, is amended to read
   18-3  as follows:
   18-4        Sec. 501.048.  STATE AGENCY SUMMARY IN BUDGET REQUESTS.  Each
   18-5  state agency shall submit in the administrative statement of its
   18-6  biennial budget request a summary containing:
   18-7              (1)  the number of first reports of injury filed by the
   18-8  agency during the preceding biennium;
   18-9              (2)  the amount of workers' compensation indemnity and
  18-10  medical benefits paid to or for employees during the preceding
  18-11  biennium;
  18-12              (3)  the number of on-the-job injuries per 100 of its
  18-13  employees during each year of the preceding biennium; and
  18-14              (4)  a description of the efforts made by the agency to
  18-15  increase job safety and to reduce job injuries, including the
  18-16  participation of the head of the agency and the executive staff of
  18-17  the agency in training programs offered by the office <division>
  18-18  and others.
  18-19        SECTION 16.  Section 502.002(a), Labor Code, is amended to
  18-20  read as follows:
  18-21        (a)  The following provisions of Subtitle A apply to and are
  18-22  included in this chapter except to the extent that they are
  18-23  inconsistent with this chapter:
  18-24              (1)  Chapter 401, other than Section 401.012 defining
  18-25  "employee";
  18-26              (2)  Chapter 402;
  18-27              (3)  Chapter 403, other than Sections 403.001-403.005;
   19-1              (4)  Chapter 405;
   19-2              (5)  Sections 406.031-406.033; Subchapter D, Chapter
   19-3  406; Sections 406.092 and 406.093;
   19-4              (6)  Chapter 408, other than Sections 408.001(b) and
   19-5  (c);
   19-6              (7)  Chapters 409 and 410;
   19-7              (8)  Subchapters A and G, Chapter 411, other than
   19-8  Sections 411.003 and 411.004; <and>
   19-9              (9)  Chapters 412-417; and
  19-10              (10)  Chapter 451.
  19-11        SECTION 17.  Section 502.041, Labor Code, is amended to read
  19-12  as follows:
  19-13        Sec. 502.041.  EFFECT <EXHAUSTION> OF ANNUAL AND SICK LEAVE.
  19-14  <(a)>  An <institution may provide that an injured> employee may
  19-15  elect to use accrued <remain on the payroll until the employee's
  19-16  earned> annual and sick leave before receiving income benefits.  If
  19-17  an employee elects to use annual and sick leave, medical services
  19-18  remain available to the employee, but the employee is not entitled
  19-19  to income benefits under this chapter until the employee has <is>
  19-20  exhausted the employee's accrued annual and sick leave.
  19-21        <(b)  While an injured employee remains on the payroll under
  19-22  Subsection (a), medical services remain available to the employee,
  19-23  but workers' compensation benefits do not accrue or become payable
  19-24  to the injured employee.>
  19-25        SECTION 18.  Subchapter C, Chapter 502, Labor Code, is
  19-26  amended by adding Section 502.042 to read as follows:
  19-27        Sec. 502.042.  MAINTENANCE OF EMPLOYEE ON PAYROLL.  (a)  An
   20-1  institution shall maintain an employee who incurs a compensable
   20-2  injury on the institution's payroll until the 31st day after the
   20-3  first day on which the employee is unable to work because of the
   20-4  compensable injury.  On the expiration of the 30-day period, the
   20-5  employee may elect to use accrued annual and sick leave before
   20-6  receiving income benefits as provided by Section 502.041.
   20-7        (b)  The requirement imposed under Subsection (a) does not
   20-8  affect:
   20-9              (1)  the employee's entitlement to benefits under this
  20-10  chapter; or
  20-11              (2)  the institution's duty to report the injury under
  20-12  Chapters 409 and 412.
  20-13        SECTION 19.  Section 503.002(a), Labor Code, is amended to
  20-14  read as follows:
  20-15        (a)  The following provisions of Subtitle A apply to and are
  20-16  included in this chapter except to the extent that they are
  20-17  inconsistent with this chapter:
  20-18              (1)  Chapter 401, other than Section 401.012 defining
  20-19  "employee";
  20-20              (2)  Chapter 402;
  20-21              (3)  Chapter 403, other than Sections 403.001-403.005;
  20-22              (4)  Chapter 405;
  20-23              (5)  Sections 406.031-406.033; Subchapter D, Chapter
  20-24  406; Sections 406.092 and 406.093;
  20-25              (6)  Chapter 408, other than Sections 408.001(b) and
  20-26  (c);
  20-27              (7)  Chapters 409 and 410;
   21-1              (8)  Subchapters A and G, Chapter 411, other than
   21-2  Sections 411.003 and 411.004; <and>
   21-3              (9)  Chapters 412-417; and
   21-4              (10)  Chapter 451.
   21-5        SECTION 20.  Section 503.041, Labor Code, is amended to read
   21-6  as follows:
   21-7        Sec. 503.041.  EFFECT <EXHAUSTION> OF ANNUAL AND SICK LEAVE.
   21-8  <(a)>  An <institution may provide that an injured> employee may
   21-9  elect to use accrued <remain on the payroll until the employee's
  21-10  earned> annual and sick leave before receiving income benefits.  If
  21-11  an employee elects to use annual and sick leave, medical services
  21-12  remain available to the employee, but the employee is not entitled
  21-13  to income benefits under this chapter until the employee has <is>
  21-14  exhausted the employee's accrued annual and sick leave.
  21-15        <(b)  While an injured employee remains on the payroll under
  21-16  Subsection (a), the employee is entitled to medical benefits but
  21-17  income benefits do not accrue.>
  21-18        SECTION 21.   Subchapter C, Chapter 503, Labor Code, is
  21-19  amended by adding Section 503.042 to read as follows:
  21-20        Sec. 503.042.  MAINTENANCE OF EMPLOYEE ON PAYROLL.  (a)  An
  21-21  institution shall maintain an employee who incurs a compensable
  21-22  injury on the institution's payroll until the 31st day after the
  21-23  first day on which the employee is unable to work because of the
  21-24  compensable injury.  On the expiration of the 30-day period, the
  21-25  employee may elect to use accrued annual and sick leave before
  21-26  receiving income benefits as provided by Section 503.041.
  21-27        (b)  The requirement imposed under Subsection (a) does not
   22-1  affect:
   22-2              (1)  the employee's entitlement to benefits under this
   22-3  chapter; or
   22-4              (2)  the institution's duty to report the injury under
   22-5  Chapters 409 and 412.
   22-6        SECTION 22.  Subchapter B, Chapter 505, Labor Code, is
   22-7  amended by adding Sections 505.014 and 505.015 to read as follows:
   22-8        Sec. 505.014.  EFFECT OF ANNUAL AND SICK LEAVE.  An employee
   22-9  may elect to use accrued annual and sick leave before receiving
  22-10  income benefits.  If an employee elects to use annual and sick
  22-11  leave, medical services remain available to the employee, but the
  22-12  employee is not entitled to income benefits under this chapter
  22-13  until the employee has exhausted the employee's accrued annual and
  22-14  sick leave.
  22-15        Sec. 505.015.  MAINTENANCE OF EMPLOYEE ON PAYROLL.  (a)  The
  22-16  department shall maintain an employee who incurs a compensable
  22-17  injury on the department's payroll until the 31st day after the
  22-18  first day on which the employee is unable to work because of the
  22-19  compensable injury.  On the expiration of the 30-day period, the
  22-20  employee may elect to use accrued annual and sick leave before
  22-21  receiving income benefits as provided by Section 505.014.
  22-22        (b)  The requirement imposed under Subsection (a) does not
  22-23  affect:
  22-24              (1)  the employee's entitlement to benefits under this
  22-25  chapter; or
  22-26              (2)  the department's duty to report the injury under
  22-27  Chapters 409 and 412.
   23-1        SECTION 23.   The following laws are repealed:
   23-2              (1)  Section 502.024, Labor Code;
   23-3              (2)  Section 502.064, Labor Code;
   23-4              (3)  Section 503.024, Labor Code;
   23-5              (4)  Section 503.064, Labor Code;
   23-6              (5)  Section 503.070, Labor Code; and
   23-7              (6)  Section 505.054, Labor Code.
   23-8        SECTION 24.  Except as provided by Section 25 of this Act,
   23-9  the change in law made by this Act to Chapters 501, 502, 503, and
  23-10  505, Labor Code, applies only to a claim for workers' compensation
  23-11  benefits based on a compensable injury that occurs on or after
  23-12  September 1, 1995.  A claim based on a compensable injury that
  23-13  occurs before that date is governed by the law in effect on the
  23-14  date that the injury occurred, and the former law is continued in
  23-15  effect for that purpose.
  23-16        SECTION 25.  The change in law made by the repeal by this Act
  23-17  of Sections 502.024, 502.064, 503.024, 503.064, 503.070, and
  23-18  505.054, Labor Code, applies to a claim for workers' compensation
  23-19  benefits based on a compensable injury that occurred on or after
  23-20  July 26, 1992, the effective date for implementation of the
  23-21  Americans With Disabilities Act of 1990 (42 U.S.C. Section 12101 et
  23-22  seq.).  A claim based on a compensable injury that occurred before
  23-23  that date is governed by the law in effect on the date that the
  23-24  injury occurred, and the former law is continued in effect for that
  23-25  purpose.
  23-26        SECTION 26.  (a)  The division of workers' compensation in
  23-27  the office of the attorney general and the division of risk
   24-1  management in the Texas Workers Compensation Commission are
   24-2  abolished on the effective date of this Act.  All employees,
   24-3  records, equipment, and supplies in the custody of those divisions,
   24-4  as those divisions existed on August 31, 1995, shall be transferred
   24-5  to the State Office of Risk Management not later than December 31,
   24-6  1995.
   24-7        (b)  In making the initial appointments to the risk
   24-8  management board, the lieutenant governor and the speaker of the
   24-9  house of representatives shall each appoint:
  24-10              (1)  one member for a term expiring February 1, 1997;
  24-11              (2)  one member for a term expiring February 1, 1999;
  24-12  and
  24-13              (3)  one member for a term expiring February 1, 2001.
  24-14        (c)  The lieutenant governor shall appoint the first
  24-15  presiding officer to serve in that capacity for a term expiring
  24-16  February 1, 1997.
  24-17        SECTION 27.  This Act takes effect September 1, 1995.
  24-18        SECTION 28.  The importance of this legislation and the
  24-19  crowded condition of the calendars in both houses create an
  24-20  emergency and an imperative public necessity that the
  24-21  constitutional rule requiring bills to be read on three several
  24-22  days in each house be suspended, and this rule is hereby suspended.